Russia sells fourth-biggest airport seized in nationalisation bid

One of Russia’s largest aviation hubs, Domodedovo International Airport, has been re-privatised and sold to a managing company affiliated with Sheremetyevo International Airport, according to an announcement by the buyer on Monday, February 9.

The development follows a June ruling by a Russian court ordering that Domodedovo, the country’s fourth-busiest airport, be nationalised and transferred to state ownership. The court determined that its previous owners, Dmitry Kamenshchik and Valery Kogan, were foreign residents and therefore not entitled to manage the strategic infrastructure asset.

In a press release, Sheremetyevo said it had acquired Domodedovo through its wholly owned subsidiary, Perspektiva LLC, in partnership with Bank PSB PJSC.

“Sheremetyevo, represented by its wholly owned subsidiary Perspektiva LLC, and Bank PSB PJSC announce the signing of an agreement for the sale of Domodedovo Airport,” the statement said.

The airport was reportedly sold at a second attempt for approximately $850 million, nearly half of the original asking price of $1.6 billion.

Sheremetyevo is majority-owned by private firm TPS Avia Holding and the Russian government, which holds a 30 per cent stake, according to Russian business outlet RBC. TPS Avia Holding was redomiciled from Cyprus back to Russia in 2022. Russian media have previously identified Arkady Rotenberg, a close associate of President Vladimir Putin, as one of the firm’s shareholders.

Since Russia launched its military operation in Ukraine in 2022, billions of dollars’ worth of assets have been seized or nationalised by the state. These have included properties linked to Western companies such as French dairy group Danone and German energy firm Uniper.

Russian authorities have argued that such actions are lawful and intended to correct flawed privatisations that occurred during the economic transition following the collapse of the Soviet Union in the 1990s. Critics, however, contend that the nationalisations have undermined investor confidence and discouraged long-term foreign investment in the country.